The past year was the beginning of Perth’s comeback as a housing market after it recorded a substantial increase in property prices on the back of strong demand.

CoreLogic data showed a 13.1% annual increase in Perth’s home values in 2021.

Real Estate Institute of Western Australia president Damian Collins said Perth witnessed a “remarkable resurgence” over the past year, supported by the low stock levels and high demand.

“We anticipate another healthy year of price growth ahead, driven by an increase in migration once borders open which will sustain the demand for property in Perth,” Mr Collins said.

On a monthly basis, Perth’s home values increased by 0.4%, ending the year with a median value of $520,000.

December was a strong month overall for Perth suburbs, with 83 recording a price growth.

The biggest performers were spread across difference price points, with the prime market of Applecross achieving the highest median gain of 6.2% ($1.7m).

Some of the more affordable suburbs also recorded gains over the month, including Kalamunda (up 4.9% to $710,000), Wannanup (up 3.4% to $585,000), Mandurah (up 3.2% to $310,000) and Beckenham (up 3% to $422,500).

Driving the price growth across Perth was the low level of listings — in fact, the number of properties on sale went down by 7% in December.

"We saw a notable decline in listings for sale at the end of December compared to November, which is very typical for this time of year as sellers choose to defer listings over the holiday period,” Mr Collins said.

Interestingly, the number of listings for sale was 4% higher at the end of December 2021 than during the same period in 2020.

However, the median days-on-market decreased to 14 days, seven days faster than in December 2020.

The fastest-selling suburbs were Kingsley (six days), Coolbellup (seven days), Floreat (seven days), Greenwood (seven days), and Heathridge (seven days).

"We saw a notable decline in listings for sale at the end of December compared to November, which is very typical for this time of year as sellers choose to defer listings over the holiday period,” Mr Collins said.

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Photo by @nathan_hurst on Unsplash.